Balfour Beatty plc (LSE:BBY) has flagged the formal conclusion of an independent compliance monitorship imposed on its US military housing business following a fraud investigation.
The infrastructure construction group said the oversight of its subsidiary, Balfour Beatty Communities, ended on 6 June, marking the completion of a process required by the US Department of Justice.
The monitorship was imposed after Balfour Beatty Communities agreed in 2021 to pay US$65.4 million in fines and restitution and pleaded guilty to fraud linked to performance incentive fees earned under military housing contracts.
US authorities alleged that between 2013 and 2019 employees manipulated maintenance performance data and falsified resident feedback records, allowing the business to claim incentive payments it had not earned.
As part of the settlement, the company agreed to appoint an independent compliance monitor and implement reforms to its governance and compliance procedures.
Balfour Beatty said Communities has spent the monitoring period carrying out a broad improvement programme. Measures included strengthening leadership and oversight structures, enhancing reporting and accountability processes and introducing more robust governance, compliance and operational controls.
The company said Communities would continue to embed those changes within its long-term operating model while maintaining a focus on transparency, operational performance and residents' experience.
Communities provides housing for US military personnel and their families. Balfour Beatty said the business remains committed to working closely with military service branches to provide safe, reliable and well-maintained housing while maintaining a strong compliance environment.
The conclusion of the monitorship removes the final formal oversight requirement stemming from the Department of Justice settlement.
